WASHINGTON – The Republican Party is floating a proposal that would combine all of the banking and credit union regulators under one roof.
The plan would preserve the credit union charter but eliminate NCUA as an independent agency, as it exists today, according to sources.
The plan would consolidate the Office of the Comptroller of the Currency with the Office of Thrift Supervision and bring them with the FDIC and NCUA under a Financial Institution Regulator. The new agency would have consumer protection powers over all institutions, including credit unions, and oversee the deposit insurance funds for banks and credit unions.
The plan is similar to the one proposed by the outgoing Bush administration a year ago, known as the Blueprint. However, since then the Democrats have taken a broad majority in Congress, giving them the upper hand in any regulatory consolidation.
Rep. Paul Kanjorski, chairman of a key House Financial Services subcommittee, said this week any regulatory reform proposal will be debated extensively in Congress, especially in light of the tenuous condition of the regulated institutions.
